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Add a Subcontractor SOV to a Commitment

 In Beta - Early Access DESIGN

The information on this page has been updated for the early access design release of the new table in the Contracts tab in the project's Commitments tool. To learn more about the early access design and its features, see Project Financials: New Contracts List in Commitments & Prime Contracts.

Objective

To add a Subcontractor Schedule of Values (SSOV) to a purchase order or subcontract.  

Background

In Procore, the 'Subcontractor SOV' tab is enabled on the Commitments tool by default. This tab provides your downstream contractors with a way to provide a detailed breakdown of specific work items on a commitment. This breakdown is entered by your contractors on a separate tab—to ensure the committed amounts on each line item on the subcontract's general 'Schedule of Values' tab remains consistent with the approved agreement. 

Example

Let's assume you are a general contractor and have a subcontract with 'ABC Concrete'. Before your company will approve payment for work items on that subcontract, you want the subcontractor to provide a line item breakdown of each cost code/cost type combination to describe their costs in more detail.

To do this, you can have Procore send an email notification to the designated 'Invoice Contact' on the commitment. This email asks their company to complete the  Subcontractor SOV.  After the subcontractor adds their detailed line item breakdown to demonstrate their labor costs, materials, or other costs associated with the work items, they can then submit the completed data entry back for your review. 

Things to Consider

  • Required User Permissions:
    • To add a line item to the Subcontractor SOV tab of any contract, 'Admin' level permissions on the project's Commitments tool. 
    • To add a line item to the Subcontractor SOV tab of a specific contract, 'Read Only' level permissions or higher if the user is also the designated invoice contact on the purchase order or subcontract. To learn more, see What is an invoice contact?
    • To add a line item to the Subcontractor SOV tab when a contract is not marked 'Private,' 'Read Only' or 'Standard' level permissions on the project's Commitments tool with the 'Create Purchase Order' granular permission and/or 'Create Subcontract' granular permission enabled on your permissions template.
    • To add a line item to the Subcontractor SOV tab when a contract is marked 'Private,' 'Standard' level permissions on the project's Commitments tool and added as an 'Invoice Contact' and as member 'Private' drop-down list with the 'Allow Users to See SOV Items' check box enabled on the purchase order or subcontract. For details, see Create a Purchase Order or Create a Subcontract.
  • Limitations:
  • Additional Information:
    • You must add line items to the Subcontractor SOV before you create subcontractor invoices for the purchase order or subcontract.
  • For companies using the icon-erp-synced2.png ERP Integrations tool: Show/Hide  

Prerequisites

Steps

Create a Purchase Order or Subcontract

Complete the steps in Create a Purchase Order or Create a Subcontract. Then continue by updating the SOV as described in the next step.

Update the Schedule of Values (SOV)

  1. Navigate to the project's Commitments tool.
  2. Beta Under the Contracts tab, locate the purchase order or subcontract. Then click Edit.
  3. Complete the data entry in the General tab.  
     Important

    To update the Schedule of Values, a user must be designated as an invoice contact. See Add Invoice Contacts to a Purchase Order or Subcontract

  4. Under Schedule of Values, add line items by clicking the click here to add a link.
    These are the line items that your subcontractor will break down into more detail on the Subcontractor SOV.
  5. Add all related line items:
    • Change Event Line Item. If you have change events enabled, you can select a change event line item if the commitment needs to be linked to a change event. 
    • Prime Contract Line Item. If you do not have change events enabled, select the related line item from your Prime Contract. If the item is not accounted for in the Prime Contract, select the "Non-Budgeted" option.
    • Sub Jobs. Any sub jobs on the project that you have synced will appear in this drop-down. All cost codes related to the sub-jobs will appear in the following field. If your company is using the Procore + ERP Integrations tool, see Which integrated ERP systems support the 'Sub Job' concept.
    • Cost Code. Select the appropriate cost code for the item. For example, 02-200 - Earthwork.
    • Description. Enter a brief description of the line item.
    • Cost Type. Select the appropriate item cost type from the drop-down list. For example, Labor or Subcontractor.
    • Tax Code. Select a tax code to use for this line item. This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?
    • Amount. Specify the cost of the line item.
  6. Click Add Line Item to add additional line items, as necessary.
  7. Once you are done adding line items, do one of the following:
    • To add subcontractor SOV line items on behalf of the invoice contact, click Create. Then continue with the steps in Update the Subcontract SOV. 
      OR
    • To invite your invoice contact(s) (see Add Invoice Contacts to a Purchase Order or Subcontract) to add line items to the Subcontractor SOV tab on their invoice, click Create an Email.
       Notes

      Clicking the Create and Email button sends an email message to notify the invoice contact to add line items to the Subcontractor SOV.

Update the Subcontractor SOV

Open the Breakdown Your Schedule of Values Invite

  1. Open the 'Breakdown your Schedule of Values for this Commitment' email message. 
     Tip
    Can't find the email message? Search your email program for an email message from procoretech.com. The subject line of the email is formatted as" "[Procore User Name] invites you to. break down your Schedule of Values for this commitment.  
  2. Review the contents of this message. An example is pictured below.
    commitment-ssov-breakdown-invite.png
  3. Choose from these options:
    • Click the View Online link next to 'More Details' at the top or bottom of the email message. 
      OR
    • Click the Go to Procore button in the email message.  
       Notes
      • If you are not logged into Procore,  you will be required to enter your login credential before being redirected to the Subcontractor SOV tab in the appropriate commitment. 
      • If this is your first time logging in to Procore, you will first need to Join Procore from the Welcome to Procore Invite sent to you by your client.
      • If you unable to log in, see Why can't I log in to Procore?

Update the Subcontractor SOV

  1. Navigate to the project's Commitments tool. 
  2. Under the Contracts tab:
    • Locate the purchase order or subcontract. 
    • Click the View button to open the commitment. 
  3. Click the Subcontractor SOV tab. 
  4. In the 'Subcontractor SOV' tab, click the Edit button
    This sets the status of the Subcontractor SOV to Draft.
  5. For each line item on the SOV, enter a description and cost until the total amount of each line item is allocated as follows:

    ssov-draft-add-line.png 
    1. Click Add Line.
      1. Continue adding lines as needed until the entire amount of the line item on the commitment is allocated. 
      2. In the Amount box, enter a breakdown for the amount being allocated. 
      3. In the text box that appears, enter a description for the amount being allocated. 
    2. Click Submit
       Notes
      • The Submit button is dimmed and unavailable until the Remaining to Allocate fields in the Subcontractor SOV all read $0.00.
      • After you click the button, Procore changes the status of the Subcontractor SOV to Under Review
      • You will NOT be able to edit your submission unless the contractor changes the status of the Subcontractor SOV to Revise & Resubmit

 

If you would like to learn more about Procore’s commitments software and how it can help your business, please visit our construction financials tool product page here.